††††† NECESSITY,
FUNCTION, AND CONFORMITY: KRS 131.130(1) authorizes the Department of Revenue
to promulgate administrative regulations necessary for the administration and
enforcement of all tax laws in Kentucky. This administrative regulation
establishes requirements for a cigarette "subjobber" to regularly
supply Kentucky tax paid inventory to "retail locations."

††††† Section 1. Definition.
"Retail location" means a place of business making any sales of
cigarettes to the ultimate consumer, including premises upon which cigarettes
are sold through vending machines and premises from where internet sales are
made, but not sales for further distribution or processing.

††††† Section 2. A
subjobber may simultaneously act in a wholesale and a retail capacity, but the
invoices, inventories, and sales records shall be separately maintained.

††††† Section 3. A
subjobber shall accept delivery of cigarettes at the wholesalerís place of
business or the subjobberís licensed business location. A subjobber shall not
have cigarettes delivered directly to the retailer by the wholesaler on his
behalf.